GBPJPY and EURJPY tend to show a strong correlation in terms of price swings. This means their charts look alike quite often. Yesterday we gave you our forecast of GBPJPY, where the Elliott Wave Principle suggested the pair was forming a top. Now we will take a look at EURJPY to see if we can find any similarities.
It turns out we can. Like GBPJPY’s, EURJPY’s 4-hour chart shows a complete five-wave advance. It began at 134.13 and led prices to as high as 144.68 as of today. However, no trend lasts forever. The theory states that every five-wave sequence is followed by a correction in the opposite direction. So, if this is the correct count, EURJPY has probably topped and we should prepare for a larger pull-back.
